What Happens If I’m in an Accident While Driving a Company Car?

You’re on your way to a meeting in a company-provided vehicle, or perhaps you’re making a delivery in a work van. Suddenly, another driver runs a red light and T-bones your vehicle. The accident is clearly not your fault, but the fact that you’re in a company car adds a significant layer of complexity to the situation.

Who is responsible? Whose insurance pays for the damages and your injuries? What are your obligations to your employer?

An accident in a work vehicle triggers a different set of rules that involve not just personal injury law, but also aspects of employment and workers’ compensation law. Understanding how these systems interact is crucial for protecting your health, your job, and your right to full compensation.

Useful Information for You: In a Nutshell

• Multiple Insurance Policies are Involved: The primary insurance for the vehicle and liability is typically the company’s commercial auto policy. Your personal auto policy may also come into play, as well as the at-fault driver’s insurance.
• The Legal Doctrine of “Vicarious Liability”: If the other driver was the one in a company vehicle and was at fault, their employer is generally legally responsible for the damages under a doctrine called “vicarious liability.” This is good for you, as companies usually have large insurance policies.
• Workers’ Compensation May Apply: If you were “on the clock” when the accident happened, you are likely entitled to workers’ compensation benefits. This can cover your medical bills and a portion of your lost wages, regardless of who was at fault.
• You Can Have Both a Workers’ Comp and a Personal Injury Claim: You can typically receive workers’ comp benefits and file a personal injury lawsuit against the at-fault third-party driver simultaneously.
• You Must Notify Your Employer Immediately: You have a duty to report the accident to your employer as soon as it is safe to do so.

Scenario 1: You are Injured in a Company Car (and the Other Driver is At Fault)

This is the most common scenario. You were driving a company car, and another driver’s negligence caused the crash. Here’s how it typically unfolds:

1. Workers’ Compensation is Your First Stop: Because you were injured while performing your job duties, you are likely eligible for workers’ compensation. You must report the injury to your employer to begin this process. Workers’ comp will be the primary payer for your medical bills and will provide time-loss compensation for the wages you miss.
2. You Can Still Sue the At-Fault Driver: The key thing to know is that accepting workers’ comp benefits does not prevent you from filing a separate personal injury lawsuit against the negligent driver who caused the crash. This third-party claim allows you to recover damages that workers’ comp does not pay for, such as the full value of your lost wages and, most importantly, compensation for your pain and suffering.

Scenario 2: You Caused an Accident While Driving a Company Car

If you were at fault for an accident while “on the clock,” the legal doctrine of vicarious liability (also known as “respondeat superior”) comes into play.

• Your Employer is Generally Responsible: This doctrine holds that an employer is legally responsible for the negligent acts of their employee, as long as the employee was acting within the “scope of their employment.”
• The Company’s Insurance Pays: The damages you caused to other people will be paid for by your employer’s commercial auto insurance policy. This protects your personal assets.
• Scope of Employment is Key: If you were on a personal errand (“a frolic and detour”) during work hours, your employer’s insurer could argue that you were not in the scope of your employment, which could complicate the situation.

What Are Your Responsibilities After the Crash?

1. Follow Standard Accident Procedures: First and foremost, handle the scene like any other accident. Call 911, get a police report, gather evidence, and seek medical attention.
2. Notify Your Supervisor Immediately: You must report the accident to your employer as soon as possible. Most companies have a specific protocol for reporting vehicle accidents. Follow it precisely.
3. Cooperate with All Insurers: You will likely have to speak with multiple insurance adjusters—yours, your company’s, and the other driver’s. It is crucial to be careful and stick to the facts.

Accidents involving a company vehicle are legally complex due to the multiple parties and insurance policies involved. If you’ve been injured in a crash while driving for work in the Tacoma area, you need an advocate who understands both personal injury and workers’ compensation law. Search the Car Accident Lawyer Directory Tacoma to find and compare trusted local attorneys who can help you navigate all aspects of your claim.

References

• Washington State Pattern Jury Instructions (WPI 50.01) – Vicarious Liability—Scope of Employment—Definition:The official instruction for juries in Washington that defines when an employer is legally responsible for the actions of an employee.

  https://www.courts.wa.gov/superiori/pattern_jury_instructions/browse_WPI.cfm?title=50

• Washington State Department of Labor & Industries – “What to do if a worker is injured”:Official state resource explaining the workers’ compensation system, which is the primary source of benefits for an employee injured on the job.

  https://lni.wa.gov/insurance/insurance-requirements/what-to-do-if-a-worker-is-injured/

• Washington State Office of the Insurance Commissioner (OIC) – Commercial auto insurance:Provides consumer information on commercial auto policies, which are the primary coverage in accidents involving a work vehicle.

  https://www.insurance.wa.gov/commercial-auto-insurance-business